Www Housemortgagemortgagecorp 2010 04 House Mortgage Mortgage Corp Real Estate One - Midland, TX

Here are many of the considerations you'll want to discuss before searching for home:
* Desired number of bedrooms and baths
*Preferences regarding kitchen, dining, family rooms, etc. and preferred home layout
*Need for a garage or parking space, and if so, for how many cars?
*How important is energy efficiency or other green home features?
* Commuting considerations.
*Landscaping considerations-the need for open play areas, privacy, patio space, decking, ect.
*Related costs such as homeowner association fees and property taxes.
*How much do you want to invest in a home beyond the purchase price, either financially or in terms of sweat equity, if you can't find exactly what you want?
* How long do you plan to live in this home? How does this impact the type of home you will buy, how much you'll spend, and your choice of location?

These are just a few tips before you get started on your new home search. Call Sandy and Sara today with any questions you may have!

Who is eligible?
First-time homebuyers are eligible for the $8,000 credit. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the purchase. Move-up buyers are eligible for the $6,500 credit. Move-up buyers must have resided in their homes for three out of the five previous years.

How does the tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all of the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9,500, an $8,000 credit would wipe out all by $1,500 of the tax due.

What happens if the purchaser is eligible for an $8,000 credit but his/her income tax liability is only $6,000?
This tax credit is what is called a "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6,000, the IRS would send the purchaser a check for $2,000.

Can I use the credit amount as part of my downpayment?
Some states and local governments have provided mechanisms to provide for this by providing a loan secured against the credit. Check with your loan officer for such programs.

This article is compliments of Suzanne Smith with HNB Mortgage.